Exeter board cuts $280,000 from 2014 budget

Friday

Jan 10, 2014 at 2:00 AM

EXETER — Selectmen agreed to cut more than $280,000 from the proposed $17.3 million fiscal year 2014 budget Monday night, which reduces the proposed increase when compared to last year's budget from 4.4 percent to 2.74 percent.

Jeff McMenemy

EXETER — Selectmen agreed to cut more than $280,000 from the proposed $17.3 million fiscal year 2014 budget Monday night, which reduces the proposed increase when compared to last year's budget from 4.4 percent to 2.74 percent.

The total general operating budget approved by the Budget Recommendation Committee was $17.3 million for the 2014 budget, as compared to the 2013 budget of $16.6 million.

But selectmen in December asked Town Manager Russ Dean to come up with more cuts to decrease the proposed budget another 1 to 1.5 percent.

The new proposed 2014 budget is $17,075 million, according to Dean, a reduction of 1.66 percent.

"We were able to cut the budget more than the 1.5 percent," Dean said Wednesday.

Dean worked with department heads to create cuts that would have "the least impact possible on services," adding "some of the reductions in here are as a result of timing."

Cuts Dean proposed that selectmen agreed to during their meeting Monday night included:

* Deferring the hiring of an officer position for the Police Department at a savings of $44,108;

* A reduction of Fire Department overtime by $20,000;

* The replacement of a retiring Fire lieutenant with a new lieutenant and the replacement of the promoted lieutenant with a new firefighter, at a savings of $67,022;

* A cut of $50,000 in the paving budget;

* A cut to the maintenance projects budget by $25,000 and,

* A deferral in hiring a new plumber position for the Department of Public Works, at a savings of $37,342.

Selectman Frank Ferraro suggested a series of other cuts that were included in a 15-page memo he gave to his fellow board members in December, but none of them were supported by a majority of the board.

The cut suggested by Ferraro that caused the most debate called for eliminating the new economic development director position from the budget, which would cut about $114,000 in salary and benefits.

Ferraro acknowledged Monday night that he had previously supported the position, but said he realized "my support was more of an emotional one than a reasoned one."

He also stated that the town would have to add $14.5 million in new property valuation every year to pay for the new director's salary and benefits.

Ferraro suggested deferring the hiring for a year and then revisiting the issue next year.

Selectman Dan Chartrand, who as a member of the town's Economic Development Commission has championed the creation of the new position, disagreed with Ferraro, saying the director only needed to bring in $4.5 million for the new position — which would be the town's share of the tax rate.

He then harangued Ferraro for his switch on the position.

"This is where I struggle being on this board with you Mr. Ferraro," Chartrand said.

He reminded Ferraro that he had supported the position all the way through the year until December.

"You are within your rights to change your mind on this," Chartrand said. "It makes me question the reliability of the processes of the board ... when we go through every step of the way and suddenly you're not there."

Chartrand said the position involves not only bringing in new businesses, but also retaining businesses.

Ferraro said he had the right to change his mind, and then added, "I'm deeply sorry that I disappointed you Mr. Chartrand."

Clement also argued against eliminating or deferring the position, saying Exeter is in competition with other towns like Epping and Stratham to attract new businesses and retain existing ones.

"To delay this a year doesn't help us, it hurts our competitiveness," Clement said.

Ferraro also called for eliminating Fire Department overtime, which potentially could have saved the town roughly $122,000, according to the budget committee's recommended budget.

He maintained fire officials promised to eliminate overtime when they were allowed to hire four new firefighters, following the release of a report by MMA Consulting Group in 2007.

"The overtime was never eliminated," Ferraro said Monday night.

But Clement said he had read the study and acknowledged that the idea was to reduce overtime by hiring the new firefighters, not eliminate it.

He also said overtime was starting to "creep up again."

Fire Chief Brian Comeau there was never "any call for elimination of overtime" in the MMA report, something which he said would be impossible to do.

Fire Department officials distributed a memo that showed that the overtime request dropped to a low of $239,033 in fiscal year 2008 and has since climbed up to $321,145 in fiscal year 2014.

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